FINANCE STOCKS AND MINING.

Free Lance, Volume III, Issue 156, 27 June 1903, Page 24

FINANCE STOCKS AND MINING.

THE fall in the discount rate of the Bank of England to 3 per cent., was inevitable in view of tli3 high ratio of the reserve to liabilities. This oheapenng of money in London ought to have a stimulating effect on trade, but it is useless to expect it to have any influence on the economic conditions of Australasia. The drought in Australia has left its imprint, and the recovery will cost money. The demands are pressing on the 1 financial institutions', and bank rates have advanced. • » • Cheap money in London will not improve matters in Australia unless the great land companies are able to obtain supplies for reinvestment m the Common wealth. It is not likely that New Zealand will suffer in sympathy with Australia except to a very slight extent. It may bring about a shrinkage in the amount available for Government loans, but that will not be a very serious matter. The credit of New Zealand is steadily improving in the London market, and when the time comes for another loan the financiers will be glad enough to lend. « * • The Transvaal guaranteed 3 per cent, loan for £30,000,000. for which the tendering was unprecedented, is to be repayable on Ist May, 1953, by means of a sinking fund of 1 per cent. The total amount of the subscriptions was £1,174,000,000, m about 115,400 tenders, and the subscriptions included the following — -N. M. Rothschild and Sons, £90,000,000; Messrs. Panmure, Gordon, Hill, and Co., £51,000,000; Messrs. Wedd, Jefferson, and Co., £45.000,000; the Credit Lyonnaise, £40,000,000: the Dresdner Bank. £30,000,000 the Deutsche Bank, £25,000,000, L. Messel and Co., £30,000,000: Messrs. Wernher, Beit, and Co., £20,000,000. It will be noted that the foreign subscriptions were much in excess of the amount required. British credit perhaps never stood higher than at present. • ♦ • If the land and finance companies of Australia are suffering from ennui, caused by the drought, those associated with New Zealand are doing very well indeed. The National Mortgage and Agency Company has just declared a dividend of 1\ per cent., and the New Zealand and River Plate Company 7 per cent. At one time in the history of the colony there was a big rush to start cooperative companies, and many of those that weire established went under, either because of bad management, or want of canital. Those that survived, and a few since established, have done very well indeed. The report of the Christchurch Working Men's Co-opera-tive Society shows remarkable progress. On a share capital of less than £5000, and a membership of 1042, the Society has disbursed in bonuses on purchases £8790, besides writing £1221 off the values of properties. The Farmers' Union is now establishing its Co-operative Distributing Company, and, with careful management, it should achieve success. * * * The question of preferential trade within the Empire must be discussed free from partisanship, but perhaps that is asking too much of the advocates of protection and freetrade. The trade of the United States will be used bv both sides to illustrate arguments, and the latest figures of the foreign trade of America for the nine months ended March 31st last show that the imports of merchandise increased £20,054,326 over the corresponding period of the previous year, while: the exports of domestic produce increased £6,752,796. The excess of exports is now gradually shrinking, the States finding a market within their own borders. * * • Periodioallv we hear of large life insurance policies being written, and the record* now passes to Mr. Rodman Wanamaker, son of John Wanamaker, of Philadelphia. He has just taken out a policy for one million dollars with the Prudential Insurance Company, the annual premium being 30,000 dollars. This brings his insurance up to two million dollars. John. Wanamaker carries 1,500,000 dollars 1 , while several Americans carry one million dollars. > • • • The sharemarket shows a little more activity in several sections. Bank

shares continue firm. Nationals are in steady demand at 90s. Investors are expecting to hear daily of the> declaration of the annual dividend. Bank of New- Zealand shares, are wanted at £3 14s, which shows a slight firmness, which may probably be diie to the appointment of Mr. Macintosh to the position of general manager. Union Bank shares continue in demand at £37 10s. Financial shares are in excellent request. There are buyers of Equitable Building shares at £9 los , Wellington Building, at £9 12s 6d ; Wellington Trust and Loan, at £7 12s , and Metropolitan Building, at £12. National Mortgage shares are in demand at 40s, which is not high considering that a dividend, is now due. New Zealand and River Plate shares are firm at 26s 3d. • * • Gas shares are steady, there being free buyers at full market rates. Ashburton Gas shares are in demand at £4 12s 6d Feilding Gas, at 19s 6d ; Palm-

erston North Gas, at £4 15s; Port Ohalmers, at 31s ; and Wellington Gas, at £18 10s, £9 ss, and £7 7s for the respective issues. Insurance shares show a recovering tendency. Nationals have buyers at 19s 9d ; New Zealands, at £4 2s 6d. Standards have had quittance at 18s 2d. Meat shares show very little variation. Ohristohurch Meat shares sold at £10, sellers askixig £10 2s 6d , Canterbury Frozen Meat shares are offered at £9 los. Gear shares command considerable attention, buyers offering £6 4s and £1 12s for the respective issues. Wellington Meat Export shares are slack. The dividend period of this comnany closes' on the 30th instant. * * « Miscellaneous shares exhibit a fine record of business. Wellington Woollens chanced hands at £4 9s 6d; Donaghy Rope and Twine, at £12 los; Leyland and OBrien 40s. D.S.C. (Auckland) sold at 12s 8d and 12s 9d;

Riverhead Paper Company's shares, at 29s 6d; and New Zealand Drug shares at 475. Most of our joint stock companies are doing well, and, taken, all round prices a/re in favour of sellers. • • • There appears to be considerable activity in mining m the Commonwealth, and the new discoveries will give, a further impetus to the industry. If the reported discoveries come up to expectation, British capitalists will soon become interested and the flow of money will set towards the colonies. Mining throughout Australasia, but particularly in New Zealand, is languishing for the want of foreign capital. If the dredeing industry is ever to be thoroughly exploited, British capital must be sought. The Australian discoveries will revive interest, and that will ultimately help us. * * * The dredging returns continue satisfactory, and free from any sensationalism. Speculation is still very mild, but the cheering feature is that sales are reported every day, and the number of transactions show a tendency to increase.